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Rupee breaches 67/$ mark, hits 15-month low against dollar

07 May 2018 Evaluate

Stretching slide for the second straight day, Indian rupee breached the psychological 67/dollar mark to hit its lowest in 15 months on Monday, on the back of consistent demand for the greenback from banks and importers. Sentiments remained under pressure with a report that foreign investors have pulled out over Rs 15,500 crore from the Indian capital market in April, making it the steepest outflow in 16 months, due to surge in global crude prices and rise in yields of government securities here. This comes after an inflow of Rs 11,654 crore in equities in March and an outflow of over Rs 9,000 crore from the debt market during the same period. However, good inflows from foreign funds in the equity markets restricted the currency’s fall. On the global front, dollar climbed back towards its highest level in 2018 on Monday as investors continued to bet that rising interest rates in the United States would boost the greenback.

Finally, the rupee ended at 67.13, 26 paise weaker from its previous close of 66.87 on Friday. The currency touched a high and low of 67.18 and 66.79 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.10 and for Euro stood at 80.11on May 07, 2018. While the RBI’s reference rate for the Yen stood at 61.44, the reference rate for the Great Britain Pound (GBP) stood at 90.84. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

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